Food Bill may be tabled in next session of Parliament

Rise in subsidy, foodgrain requirement hurdles to making the Bill an Act: Thomas

Food Minister K V Thomas on Wednesday said the Food Security Bill might be tabled in Parliament in the Budget session.

A parliamentary committee has been studying the provisions, which would entitle all citizens to subsidised food. It’s report is expected next month, Thomas said, adding the Bill would require subsidy of Rs 1,20,000 crore a year, against the current Rs 1,09,000 crore. The increase in subsidy and the requirement of more foodgrains were hurdles to making the Bill an Act, he said.

Initially, it was proposed, 35 kg of foodgrain would be provided to below-poverty-line (BPL) families at Rs 3 a kg for rice and Rs 2 a kg for wheat. Now, it has been proposed 7 kg of grain be provided to each beneficiary.

This year, the government has procured 82 million tonnes (mt) of foodgrain. The Public Distribution System (PDS) requires 64 mt. Apart from including the PDS, the Bill would also cover nutrition requirements through schemes such as the Integrated Child Development Scheme. It would also cover nutrition schemes for pregnant and lactating women.

Under the Bill, the government proposes to provide a uniform exclusion rate of 33 per cent for all states and treat BPL and above-poverty-line (APL) families on a par while deciding the amount of foodgrain to be supplied. Through this, the government plans to limit the burden of additional foodgrain and increase in subsidy. It is estimated 65 mt of foodgrain would be required under this plan, yet to be made part of the Bill. Once this plan is incorporated in the Bill, 67 per cent of all rural and urban households would be entitled to cheap grains, against the current provision of 75 per cent of rural households and 50 per cent of urban ones.

Recently, Uttar Pradesh Chief Minister Akhilesh Yadav had written to the Centre to reconsider the uniform exclusion rate clause.

Earlier, various economists, including Jean Dreze, had suggested simplifying the scheme, and doing away with the distinction between BPL and APL families.